Your income is an asset that may also need protection

How do you protect the things that you've worked so hard for? If you're like most Americans, you rely on insurance to protect some of your most important assets - such as your home or vehicle. For example, you have a homeowner's policy so if your house were to burn down, you wouldn't have to worry about where the money would come from to rebuild.

Having the right insurance is critical when it comes to protecting your most important assets. But when you get right down to it, what made those assets possible? Your income of course! Without an income, you likely wouldn't have qualified for a home or auto loan in the first place, let alone have the monthly income to manage the monthly payments.

If you're like most people, your ability to earn an income is one of your most vital assets. Yet despite its importance, few of us have the insurance coverage to protect it. We're of course talking about disability insurance.

Why get disability insurance?

Ask yourself, if you were to become too sick or hurt to work, how would you manage financially? You may have an emergency savings, but how long would that last if you were sick or disabled and out of work for 6 months or longer? Disability insurance could help protect against this potential reality.

Despite the importance of insuring your income with disability insurance, according to LIMRA, only 18% of Americans has a disability insurance policy. Why? Because many people don't think it will happen to them - especially if they're young. However, according to the Social Security Administration, over one in four of today's 20 year-olds will become disabled before they reach retirement age.¹

Another reason for putting it off is the misconception that the majority of disabilities are work-related and therefore, covered under workman's compensation benefits. However, many disabilities are illnesses or physical limitations not related to accidents in the workplace. For example, a recent study reports that 90% of employers report musculoskeletal care is the their top medical claims spend.²

Simply put, having disability insurance protects your ability to earn an income by protecting your paycheck if you become too sick or hurt to work. The difference this type of policy can have in your life can be substantial, and choosing to go without it puts nearly everything you have at risk.

Don't wait. Check with your financial professional or insurance professional who can help you find a disability policy that's right for you.


1. http://www.ssa.gov/news/press/basicfact.html 
2. Hinge Health, State of MSK 2022. 

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